The UK’s rental market is booming as would-be sellers find letting property is a better option during the current slowdown.
A study by the Royal Institute of Chartered Surveyors (RICS) has confirmed previous predictions of a surge in the number of landlords.
New instructions to let houses and flats have increased at the fastest pace ever seen by the group’s regular residential lettings survey.
Over the last three months 47 per cent more surveyors reported a rise rather than a fall in landlord instructions to let.
Rents have also continued to rise as more would-be first time buyers struggle to get on the ladder despite falling house prices and turn to let property instead.
An ongoing squeeze on the mortgage market is thought to be preventing many potential new homeowners from securing purchases.
RICS spokesman James Scott-Lee said:
“Many sellers are willing to ‘hold’ and await the return of capital appreciation. Becoming a landlord is now an increasingly profitable option with rising rents and yields offering good returns.
“Established investors have been reaping the benefits of the housing downturn for sometime and will continue to do so in the short term.”
However, he also warned the increasing supply could eventually impact on rental growth as tenant options increase.
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